Nomura has maintained a “Buy” rating on Hero MotoCorp while revising its target price upward to ₹5805 from ₹5663, citing key rural recovery trends as a pivotal growth catalyst. The brokerage highlighted that Q2FY25 results were in line with expectations, showcasing healthy earnings growth, attractive valuations, and potential for margin improvements.
Nomura anticipates the two-wheeler industry to grow at a 10% compound annual growth rate (CAGR) over FY25-26, bolstered by a rebalancing of growth dynamics and positive monsoon effects. Additionally, early signs of rural market revival are expected to support sales momentum in the near term.
The robust outlook for Hero MotoCorp aligns with improving rural demand trends and ongoing valuation strengths, positioning the company favorably amidst sector-wide recovery prospects.
